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The world's smallest island republic

By: Philip Game
Nauru's Anibare Bay

Nauru's Anibare Bay

Nauru, the world’s smallest island republic, searches for a sustainable future... but is money laundering or hosting Australia's unwanted boat people the answer?

Too small to mint its own currency,  Nauru has become a tax haven, attracting money launderers.

Nauru is a tiny equatorial Micronesian nation whose prosperity (no longer assured) relied until recently on phosphate rock, that is, ossified bird droppings, a resource now almost depleted. Inside the reef, a lush equatorial coastline belies the moonscape of the heavily-mined interior. Nauru's few visitors can fish for marlin, yellowfin tuna, skipjack, barracuda and more.

More recently, Nauru became a "dumping ground" or resettlement place for some of Australia's unwanted refugees. But many Nauruans question whether this is an appropriate role for an independent nation.

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